South Korean SKC (KRX: 011790) is considering a significant expansion of its glass substrate production capacity—up to tenfold—as it pushes toward commercializing next-generation semiconductor packaging materials. According to multiple sources in the semiconductor industry, the company aims to quadruple production by late 2025 or early 2026, with a longer-term goal of increasing output tenfold, contingent on customer approval and financing.

Glass substrates, produced through SKC's U.S.-based subsidiary Absolics, are gaining traction as a key enabler for high-performance and high-density semiconductors due to their smoother surfaces, reduced warping, and suitability for fine circuitry. These properties make them particularly well-suited for AI servers and data center applications.

SKC is currently conducting qualification tests with major clients including AMD and Amazon. According to industry insiders, these tests are in their final stages and the product is already beyond the technical development phase, entering commercialization. If successful, the company plans to increase capacity from 5,000 to 20,000 substrates per month by 2026, with a potential scale-up to 50,000. Commercialization could also come earlier than the previously projected 2027–2028 timeframe.

SKC has also taken steps to secure funding for this expansion. The company has already received $40 million of a $75 million subsidy from the U.S. CHIPS Act and recently raised ₩260 billion through an exchangeable bond offering. It is also reportedly in talks with Applied Materials for potential strategic investment.

The company's first commercial product will be a “glass core substrate,” which replaces only the core layer with glass. Over time, SKC plans to develop a full-glass substrate through further technological advancements.

Given ongoing losses in its copper foil business due to EV market slowdowns, SKC sees glass substrates as a critical future growth driver. If qualification and funding align, the company could become a key player in reshaping the advanced semiconductor packaging supply chain.